Thinking of starting a dog walking business? Congratulations! If you love dogs, being a professional dog walker can be both satisfying and profitable. This guide highlights dog walking industry statistics, walking dogs as a Sole Proprietor, and registering a Limited Liability Company (LLC) to protect your personal assets. We’ll also offer tips and resources to help you launch a successful dog walking business. Read on to find out how to prevent personal liability, protect yourself, and make money as a dog walking service.
According to IBISWorld industry statistics, the dog walker business produced about $1 billion in 2022 and is expected to grow by about 5.5% in the same year. The demand for dog walkers continues to grow as more households take in furry family members.
If you’re not registered as an LLC (Limited Liability Company) or Corporation, the IRS considers you a Sole Proprietor or an unincorporated business. You can do business legally without a registered company, but you won’t have any liability protection if a client or other party sues you. In simple terms, you could be personally wiped out to settle legal claims.
A Limited Liability Company (LLC) provides limited liability protection by separating business and personal assets. This means that only the assets belonging to your business can be taken to cover business legal claims. So for instance, if your dog walking business only has $500 in the bank account and no inventory, the courts can only take what’s in your business bank account. None of your personal cash, vehicle, or other assets can be considered to pay judgments.
An LLC is taxed as a pass-through entity. Pass-through taxation means the company itself doesn’t have to file tax returns or pay taxes. You as the owner of the business report and pay taxes on your personal income tax return (1040 form). Because of this, many entrepreneurs form an LLC to simplify tax reporting.
Many pet owners would rather hire legitimate companies over sole proprietors. A Limited Liability Company increases credibility with customers, meaning you can win business just because you’re officially registered. It also means you’ll have an advantage if you ever decide to raise funding to grow your business.
Before you sign up as a professional dog walker, you’ll want to register a company – either an LLC or a Corporation. The traditional Corporation model can be complex and has more reporting requirements than an LLC. In our experience, many startups go with the LLC business structure, because it’s easier to manage and maintain compliance than a Corporation.
Register as a professional dog walker in your area.
TIP: There may also be local companies in your area, so search the Internet for “dog walking services” or “dog walking companies” to find them. You can sign up for multiple platforms to increase business.
Some companies like Wag! require you to sign up with your personal name and social security number so they can run a thorough background check. But you can still get paid as a professional dog walker by registering your payout account (usually Stripe or PayPal) using your business information. So for example, you would sign up with Wag! using your personal name and social security number, then use your LLC information when you set up a Stripe account to receive payouts.
You’ll need to open a designated bank account for your dog walking business. Check with your local bank, search online, or contact one of our banking partners for the best solutions. If you register your business with MyCompanyWorks, you’ll get access to business banking solutions in your free account dashboard.
You can start shopping for walking insurance, business licenses, and permits as soon as you receive your Articles of Organization (LLC) or Articles of Incorporation (Corporation). If you order from us, we’ll notify you when your paperwork is ready. You can get a free insurance quote from one of our recommended providers.
Business license and permit requirements vary by county and state. You’ll need to contact your state’s business agencies to find out about dog walking business licenses and permits in your area. You can also contact our business license partners to do the research for you and send the correct forms for you to complete.
The dog walking industry is growing steadily, and the trend continues as more pet lovers take in their furry friends. You can make money walking dogs, whether it’s a side hustle or a full-time business. Either way, you don’t want to expose your personal assets to lawsuits. When you work as a Sole Proprietor, your personal savings, retirement fund, and other assets can be seized if you’re found to be at fault by a customer, vendor, or other parties. You can protect yourself by forming an LLC or Corporation.
Once your company is formed, you can set up a business bank account to get paid as a professional dog walker. You’ll also need to apply for walking insurance, business licenses, and permits required by your state. Our insurance and licensing partners can offer free quotes and help you find the right licenses and permits for your business.
If a dog walker platform allows it, sign up using your business name and employer identification number. Some platforms like Wag! require personal information for background checks, but you can still get paid as a business. Just make sure your payout accounts are in your business name.
You can order an LLC online with just a few clicks and details about your business. You can track your order’s progress from your free account dashboard (included with your order). Most orders are processed in one business day and our support team is available during business hours to help you through the process. You can also find loads of helpful resources on our website.
Need help with business compliance? MyCompanyWorks Premium™ can take care of annual reports, meeting minutes, and compliance without having to worry about missing important deadlines. Check out our latest competitor comparison and 5-star reviews to help you find the best business formation services. Contact us today for help and more information.
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This entry was posted on Thursday, October 27th, 2022 at 8:29 am and is filed under New Business Ideas, Starting A Business. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.